Volatile Pork Prices Predicted for 2013

Feb 04, 2013

Rabobank Report: Higher Feed Costs Weakens Global Pork Price Expectations

Rabobank released its pork quarterly Q1, noting that while global pork prices starting off strong in 2013, it anticipated that there will be a weakening in prices in late Q1 and into Q2. The key factor for this trend is pressured coupled with slowing growth in global production levels.

The report outlines some of the key factors believed to influence pork prices for this year including – looking at the European production levels given the new animal welfare regulations, China’s demands for imports, and signs if US hog production will expand.

“Despite the higher feed input costs, the US swine breeding herd has modestly expanded and large scale farming continues to develop at a rapid pace in China, Russia and Brazil. There seems to be limited opportunity for a significant increase in pork prices, given this expansion. Chinese hog supplies appear to be sufficient, but their economy is recovering which could stimulate demand growth,” said David Nelson, Rabobank Analyst.

Overall, Rabobank predicts that global pork prices will be lower than previously forecasted largely due to higher feed costs and herd liquidation – which is happening in the U.S.

Video: What Does 20 MILLION Hogs a Year Look Like?

?? The Multi-Plant System Processing 20 Million Hogs Annually in the Midwest JBS USA operates multiple large-scale pork processing facilities across the Midwest, including major plants in Iowa, Minnesota, and Indiana. Combined, these facilities have the capacity to process approximately 20 million hogs annually.

Each plant operates high-speed automated slaughter systems capable of processing up to 20,000 head per day, followed by fabrication lines that break carcasses into primals, sub-primals, and case-ready retail products.

Hog procurement is coordinated through electronic marketing platforms that connect regional contract finishing operations and independent producers to plant demand schedules. This digital procurement system allows for steady supply flow and scheduling efficiency across multiple facilities.

Processing plants incorporate comprehensive food safety systems, including pathogen intervention technologies, rapid chilling processes, and integrated cold-chain management. USDA inspection is embedded throughout the harvest and fabrication stages to ensure regulatory compliance and product integrity. Finished pork products — from bulk primals to retail-ready packaged cuts — are distributed through coordinated logistics networks serving domestic and export markets.